Glaxo, Abbott Q3 earnings best analyst expectations
- Abbott's worldwide sales for Q3 2014 were $5.1 billion, a 6.7% operational increase. Diluted earnings per share (EPS) for the quarter was $0.62, representing a 12.7% gain.
- GlaxoSmithKline was able to beat analysts' expectations despite the lapse of the best-selling asthma drug Advair's patent protection and a record $489 million fine for bribery in China. Profits fell 1% to $3 billion, or $0.45 per share, besting analyst projections of $0.39 per share.
- Abbott outperformed expectations—targets for the quarter ranged from $0.59 to $0.61—so full-year 2014 guidance has been adjusted upward. Its highest target is now $2.29 per share. GSK is considering an IPO for its joint HIV development project with Pfizer, ViiV Healthcare.
Abbott reported strong sales across the board for Q3 2014, including for branded and generic pharmaceuticals. It also doubled its branded presence in Latin America, thanks to the acquisition of CFR Pharmaceuticals.
The future looks bright, too, as Abbott has received EU approval for the Freestyle Libre Flash Glucose Monitoring System. It also has a strong drug pipeline, including nearly 200 active products in phase III and phase IV.
Glaxo will be sure to keep an eye on sales of its new respiratory drugs, Breo and Anoro, which had flat sales in Q3. Abbott stock was down slightly in early morning trading while GSK was up nearly 3%.